Question
Oma Company has the following budgeted costs for 10,000 units: Variable Costs Fixed Costs Manufacturing $200,000 $100,000 Selling & Administrative 175,000 50,000 Total $375,000 $150,000
Oma Company has the following budgeted costs for 10,000 units:
|
| Variable Costs | Fixed Costs |
| Manufacturing | $200,000 | $100,000 |
| Selling & Administrative | 175,000 | 50,000 |
| Total | $375,000 | $150,000 |
Required:
|
|
|
| a. | What is the markup on variable costs needed to obtain a target profit of $75,000? |
| b. | What is the markup on manufacturing costs needed to obtain a target profit of $75,000? |
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Auditing That Matters Case Studies Discussion Guide
Authors: Norman Marks
1st Edition
B089J5JCL2, 979-8650410546
